Enel announces that the last of the conditions to which the reorganization of the group's shareholdings in Chile was subject has occurred. The transaction was approved last December 20 by the extraordinary shareholders' meetings of the subsidiaries Enel Chile and Enel Generación Chile.
In fact, the tender offer launched by Enel Chile on all the shares of the subsidiary Enel Generación Chile held by the latter's minority shareholders was concluded successfully, the effectiveness of which was subject to the acquisition of a total number of shares such to allow Enel Chile to increase its stake to over 75% of the share capital of Enel Generación Chile from around 60% prior to the aforementioned transaction.
The takeover bid reached acceptances for a number of shares corresponding to approximately 33,6% of the capital of Enel Generación Chile, thus allowing Enel Chile to increase its stake in the same to 93,55% of the capital. This transaction is part of the group's simplification process, which is one of the five fundamental principles of the 2018-2020 Strategic Plan presented in November 2017.
Enel plans to continue reducing the number of operating companies in South America, with the goal of reaching fewer than 30 operating companies in the region by 2020, compared to 53 companies at the end of 2017. In particular, on March 25 the acceptance of Enel Chile's takeover bid by the minority shareholders of Enel Generación Chile who have accepted it has become effective. It should be noted that the payment of the consideration and the subscription of the Enel Chile shares issued to service the tender offer will take place on April 2nd.
Furthermore, the amendment to the by-laws of Enel Generación Chile became effective, which removed the limits on share ownership, which so far have not allowed a single shareholder to own more than 65% of the share capital. Lastly, the merger by incorporation of the renewable energy company Enel Green Power Latin America into Enel Chile and the capital increase of the latter to serve the same merger will become effective on April 2nd.
Enel Chile shareholders who have exercised their right of withdrawal in relation to this merger will be able to see the value of their shares liquidated. As a result of the aforementioned corporate reorganisation, the equity investment held, directly and indirectly, by Enel in Enel Chile stands at around 62% of the latter's share capital from the previous 60,6%.
At the same time, the group's economic stake in the Chilean companies, understood as the sum of Enel's net result in proportion to the direct and indirect stakes held by it in all Chilean companies, increased to over 58% from less than 49% as a result of the adhesion of the shareholders of Enel Generación Chile to the tender offer.
